1. Presentation to portfolio committee of higher education and training
2019/10/05
Presentation to Portfolio Committee on Higher Education and training
Presentation to portfolio committee of higher education and training
Presenter: S Mlotshwa
President: SACPO
Date: 28 August 2019

2. Presentation to Portfolio Committee on Higher Education and training
2019/10/05
Presentation to Portfolio Committee on Higher Education and training
TABLE OF CONTENT
Background
Allocation of upfront payments to TVET colleges in 2019and challenges experienced
Roll-out of the student-centred model in the TVET
Progress with the payment of outstanding allowances
General Challenges experienced from NSFAS

3. Presentation to Portfolio Committee on Higher Education and training
2019/10/05
Presentation to Portfolio Committee on Higher Education and training
Background
The TVET sector is in general financially constrained due to the following
- Colleges largely provide for students from poor families
The infrastructure structure grant is tied up in the Department
There is an increased demand for access in the TVET sector which is not reciprocated by increased funding
Lack of the appropriate funding framework for TVET colleges
The prevailing funding pressure continue to place pressures on the personnel budget of the colleges and consequently constrains the ability of college to cater for college operations

4. Presentation to Portfolio Committee on Higher Education and training
2019/10/05
Presentation to Portfolio Committee on Higher Education and training
Background
There were notable challenges experienced with the NSFAS online system, which resulted in most colleges reducing their enrolments numbers in the previous year.
Most colleges were not able to recover part of the remaining 20% of the programme costs from the scheme due to challenges experienced from NSFAS 
Insufficient funding allocation, particular for financially needy and academically deserving students is a major challenge
Delays in disbursements has also caused student unrest in most colleges

5. Allocation of upfront payments for 2019
2019/10/05
Presentation to Portfolio Committee on Higher Education and training
Allocation of upfront payments for 2019
This allocation is made by NSFAS to ease the financial pressure to the colleges
Upon receiving it, the colleges the colleges are to use it for student tuition fees and their allowances
They may only be utilised for funded students
There are difficulties in utilising these funds at the beginning of the academic year due to a tedius process which often results on some students not being funded
There has been an improvement for the current year and most colleges have received their upfront payment

6. Allocation of upfront payments for 2019
2019/10/05
Presentation to Portfolio Committee on Higher Education and training
Allocation of upfront payments for 2019
There are some allocations for both 2017 and 2018 in other colleges that cannot be allocated to students accounts, due to lack of disbursement list from NSFAS.
In most instances, colleges have received their upfront allocations, however they cant be allocated due unavailability of the provisionally approved list
As a result the accounts of students are still in Debit

7. Allocation of upfront payments for Previous years: Challenges
2019/10/05
Presentation to Portfolio Committee on Higher Education and training
Allocation of upfront payments for Previous years: Challenges
Funding decisions were delayed in some colleges which resulted in upfront payment not utilised
New students bursary applications that NSFAS could not retrieve from their systems which resulted on a student not being funded
Returning students who were not funded at the beginning of the academic year due to delays in student exam results
Students not signing their Schedule of Particulars on time, which resulted on institutions not paying the upfront allowances

8. Summary on upfront payment : Status Quo
2019/10/05
Presentation to Portfolio Committee on Higher Education and training
Summary on upfront payment : Status Quo
Allocation of upfront payments made
Upfront payments from previous yeas
Challenges with disbursement of upfront payments
Payment for the current year has been paid to majority of the colleges, however there are colleges that have still not received their upfront payment e.g. Flavius Mareka and Motheo in the free state
Payments from previous years are still outstanding in majority of colleges, although resolved in some of the colleges
-The upfront payment created student expectations thinking that they will be receiving allowance from that
In some cases where disbursement are not done for due to incorrect calculations by NSFAS
Type 4 and 5 students were declared to NSFAS but not funded
Some students on the 2019 remittance lists have cancelled their registration
The remittance list of students always arrive three or more weeks late after the enrolment

9. Roll out of the new student centred model in the TVET sector
2019/10/05
Presentation to Portfolio Committee on Higher Education and training
Roll out of the new student centred model in the TVET sector
The system was introduced to ease the administrative burden and reduce delays in funds to students
The system proved to be good in theory, however the planning and readiness of NSFAS was not as good
A lot of processes were changed during the implementation stage of the model
Lack of training and technical problems experienced have given rise to the student protests

10. Presentation to Portfolio Committee on Higher Education and training
2019/10/05
Presentation to Portfolio Committee on Higher Education and training
Roll out of the new student centred model in the TVET sector: Challenges
Current effect of the 2017 and 2018 backlog could negatively impact on utilisation of the 2019 allocation;
Data integration challenges delay sharing of data between Colleges and NSFAS;
Inadequate capacity to manage the significant increase in bursary funding;
Network challenges during high volumes processing;
Non-responsiveness of NSFAS to queries lodged by Colleges;
Late disbursement of allowances; and
Delayed and inconsistent messaging to Colleges and students.
Poor communication from NSFAS to institutions regarding disbursement of funds 

11. Summary on the Roll-out of student centred model : Status Quo
2019/10/05
Presentation to Portfolio Committee on Higher Education and training
Summary on the Roll-out of student centred model : Status Quo
Challenges experienced in rolling out the student centred model
Improvements to be considered with the Student centred Model
Lack of staff capacity is a serious challenge
Late payments of student allowances which creates student unrest
The online application open window period for third trimester combined with the following year created confusion
System congestion
Students not uploading complete documents which led to unfunded status
Students forget their login credentials and change their contact numbers
Some of the returning students were not migrated on time to the new system
System unable to handle the volume of applications and uploading of documents
Vetting of students takes too long
Online application process were not aligned to TVET enrolment cycles
Colleges to improve on the data capturing process
NSFAS to speed up their payments processes
The should be a regular report on why some students are not paid and what should be done to avoid that
NSFAS must deploy their officials to colleges or give Bursary administrators access to the system
The current TVET work stream works better as colleges have dedicated personnel who are able to respond to their issues
Colleges to perform the vetting of students themselves

12. PAYMENTS OF OUTSTANDING ALLOWANCES DUE TO STUDENTS IN THE TVET SECTOR
2019/10/05
Presentation to Portfolio Committee on Higher Education and training
PAYMENTS OF OUTSTANDING ALLOWANCES DUE TO STUDENTS IN THE TVET SECTOR
Colleges have submitted allowances of all students that are funded and qualify for 2019 with the registration forms via ITS and the portal
However, colleges are yet to receive any communication from NSFAS if the allowances were approved or not.
Allowances were already paid to returning students who were funded and qualifies)
There are students who qualifies for allowances but due to their funding not yet confirmed by NSFAS, they could not get allowances. (Students are in need of the allowances and are struggling.)
Students are being evicted from their residences and this have and could lead to protests and poor academic results.

13. Summary of outstanding allowances due to students
2019/10/05
Presentation to Portfolio Committee on Higher Education and training
Summary of outstanding allowances due to students
Have outstanding student allowances being paid
Challenges experienced with payment of student allowance
Progress made in resolving issues of student allowances
This is partially implemented, some students have been paid and some students have not been paid
Allowances are not paid on time
Some students have not been paid since January 2019
Students to update their information from the system as this cannot be done on their behalf
Inaccurate data that is caused by the colleges due to lac k of bursary clerks in some campuses
The system showing that students receiving allowances whilst they have not
Lack of submission of banking details by students
Students are still demanding their 2018 unpaid allowances
NSFAS not sending remittance list on time for 2018 as a result colleges cannot pay students without remittances
In some instances the 2017 year was not closed off and that impacted on funding decisions for 2018, the 2018 funding process has yet to be finalised and issues resolved in some colleges
Majority of the allowances are been paid monthly
Constant communication with NSFAS has assisted colleges so far
Information osters, sms sent to students nd addressing student masses

14. Any other challenges experience by the college related to the NSFAS
2019/10/05
Presentation to Portfolio Committee on Higher Education and training
Any other challenges experience by the college related to the NSFAS
Challenges still experienced by colleges
Payments from previous years are still outstanding and accounts have not been cleared which affects the cash-flow of all college
turnaround time still a challenge
Colleges are battling to get the appeal results
2017 closeout report still outsatnding in majority of the colleges
Icorrect information given to students through the NSFAS Call Centre
Lack of response from NSFAS when college officials are sending requests
Delays in funding decisions
Students that have been declared have not received their allowances for 2019
Appeals and the appeal window is a challenge as NSFAS doesnot provide enough time for student appeals. There is lack of clarity around appeals submissions and feedback from NSFAS
NSFAS cannot link automatically link the supplementary results and any delayed results

15. CONCLUSION: COLLEGE READINESS FOR 2020
2019/10/05
Presentation to Portfolio Committee on Higher Education and training
CONCLUSION: COLLEGE READINESS FOR 2020
The colleges have to contend with all the challenges mentioned above and prepare for 2020 regardless
SACPO has since done the following to ensure readiness to 2020
Conducted fruitful discussions with NSFAS and DHET and strides were made. NSFAS will pay project management fee to colleges to administer student allowances
Participated in the review of bursary rules and guidelines
Colleges are now discouraging walk-ins and implementing early registrations in the prior year

16. Presentation to Portfolio Committee on Higher Education and training
2019/10/05
Presentation to Portfolio Committee on Higher Education and training
Recommendations
NSFAS must improve their bursary application portal urgently
Urgently improve on the funding decision process of returning students
Communication between NSFAS and TVET’s need to be improved
NSFAS to assign a delegated persons to work with each TVET college or pay colleges the management fees
Give TVET’ colleges access to download registrations already uploaded, as NSFAS promised to send them weekly to no avail
Most importantly, NSFAS must pay the agreed management fees so that colleges are able to capacitate their bursary offices

17. Presentation to Portfolio Committee on Higher Education and training
2019/10/05
Presentation to Portfolio Committee on Higher Education and training
Thank you